Which of the following statements is true?
- Sovereign debt is susceptible to distortion effects based on ESG ratings.
- ESG is a standalone component within the entire investment process.
- It is well understood that the long-term returns on equities outweigh the short-term risks associated with the adoption of ESG by companies as well as funds.
- Proprietary ESG data are often a real differentiator for investment firms.
why d is not correct?
proprietary ESG (Environmental, Social, and Governance) data, which are unique to specific investment firms and not publicly available, can indeed provide a competitive advantage for those firms. Having access to exclusive ESG data allows investment firms to conduct more in-depth analyses, identify investment opportunities, and potentially outperform competitors who rely solely on publicly available ESG ratings and data.
